How coronavirus (COVID-19) affected global stocks


Stocks refers to investments made into a company with an aim of earning profits from their sales. It offers one a share in the ownership of a company.

They can either be in form of a common stock or preferred stocks. With the development of corona virus pandemic that keeps us in our homes, it has caused a lot of pressure on the economy. This article will help anyone who wants to buy stocks.

The UK and the whole world at large has been hit by a pandemic. The novel Corona Virus, COVID-19. The cases as of now are at 283,268 and growing and death toll is at 11,829. The World Health Organization declared the virus a global pandemic last week because of its spread to almost all counties in the world and to all continents as well. The virus has hit at a time where scientists have no experience in the disease. Currently, there is no authorized cure for it and for the time being, people are advised to self-quarantine and to practice social distancing. These measures will help to contain the number of growing cases so that the scientists and doctors have time to develop a cure for it.

Some countries have asked companies to allow their employees to work from home while other companies have closed their places completely to curb the spread of the novel virus. As a result of these new measures to control the disease, the economy has not seen such hard times in a very long time. Not just the economy of the UK but the rest of the world. We will try to discuss where different organizational stocks lie currently and how the crisis is affecting them. We will also give people interested in buying stocks the right information so that they can make the right decisions.

In the midst of any crisis, their bound to be ups and down ns. Just like any other ordinary day, the market is not always constant, sometimes, stocks go up and others go down depending with the supply and demand. So, the situation does not just change because of a crisis and the only difference is that the stocks will be on either side of the extremes. By that, we mean that, either the stocks are very low or are very high.

Having a crisis may make an organizations stock sale to rise or fall. Many companies are taking advantage of the crisis due to the demand of their products and their stocks have never been this high in along time. An example is the pharmaceutical companies, especially inovio pharmaceuticals which deal with biotechnology to come up with DNA based therapy to cure and prevent infections. This company is at the fore front of getting the cure for the virus by coming up with a vaccine. Investors are encouraged and motivated to buy a share because this will be ground breaking if they manage to get the cure, and this will benefit investors heavily. As of closing time, inovio stock was at an 11.25% profit, an improvement of + 0.73 from the previous closing time. As you can see, not every crisis is bad on the economy. This article will try to separate the companies that are rising and those that are falling hard during this crisis. It is also referred to as ino stock. This is the standard way it appears on the charts.

The good 80/20

From the above information, it has been explained that not all companies are doing bad. In this segment we will give some examples of companies that are doing well in the crisis because of the measures put in place to control the spread of the disease. Now that people are at home, they find other things to do apart from going to the office and working the 9-5 shift. That being said, these are some of the companies that are benefitting.

• Countries are coming up with measures to stop the spread of the virus and are advising companies to have their employees work from home. With that slack and zoom are among the companies that are benefiting from this measure to prevent the pandemic. The slack stock is increasing in a high rate with it closing at 5.86% which is an improvement of + 1.23 from the previous closing. Slack is a computer software that spreads across the UK to the world. It brings people together by facilitating activities like video conferencing through one on one meetings and it is a perfect way to work from home. Anyone interested in buying shares should invest with them. People can also use zoom while working from home. It is a platform that is used for video conferencing, online meetings and chat rooms. Zoom stock is at 5.48% which is an increment of +6.78 from the end of the previous closing day. Zoom now has over 2.33 million new customer and the numbers are increasing every day.

• Another measure that people are using is social distancing. Social distancing simply means avoiding crowded areas by standing at least 1 meter from the other person whether they are infected or not. Peloton is a company benefiting from this measure as they mainly deal with home exercise gear. Though People are no longer going to the gym, they still need to be fit. They have made this possible by delivering equipment to their homes and also help to set them up. The peloton stockis selling at a decline of 7.98% making it a decrease of -1.98. They have extended their workout trial on their app from 30 to 90 day’s during the isolation and we hope with this they will get both new customers and investors.

• As discussed earlier how pharmaceuticals companies are working hard to create the cure for corona virus, Mordena is another company that has not been left behind in trying to come up with the cure. The competition in the field is growing at a high rate and because of this, the Moderna Stock called mrna stock is a bit low.

The bad 20-80%

At peak of a crisis, majority of the companies fall. Some fall because people are no longer buying from them. Others fall because they increase their prices which cannot be met by the ordinary citizen. Some fall because the supply is a lot more than the demand. These are some of the companies that have fallen due to the tough times we are all facing at the moment.

• The measures given by the government has its benefits as well as the disadvantages. The disadvantages are affecting businesses severely. For example the restaurant business is falling especially if they lack home delivery and making their supplies bound to fall too. Such companies include beyond meat and impossible foods. These two companies encourage health living by offering plant based foods that are made to taste like beef but does not contain any products from animal. Due to the ongoing crisis, they can no longer supply to restaurants. The workers from these companies can no longer go to work. From that, it is evident that investing in them now will not make so much profit and until the companies are able to recover you will have spent a lot and the success is not guaranteed. Investing in beyond meat stock and impossible foods stock may not be a good investment at the moment.

• Travelling has also been greatly affected. Some countries are cancelling flights, others are in total lockdown, and others are not accepting visitors from infected countries. This has led to the decrease in oil prices extremely. Many airlines have sacked their employees and they have also lowered the prices for the trips affecting the airlines. Apart from airlines, cab businesses have also been affected as People are no longer using them since they have self-quarantined in their homes. Lyft is such a cab and since it is not as global as uber, they are really struggling to stay in the market although it is a better option at the moment compared with the public transport. The Lyft Stock is not looking great at the moment as the sales are taking a fall of about 60%. Lyft stock price is also low and at the moment it will not be a good investment. Once the crisis is over then one can feel free to buy shares with them.

• The mdr stock has also suffered a lot during this period. It is a company that offers construction and engineering services all over the world. Their sales are going down day by day due to lack of preparedness to deal with calamities like this.

• Still on the lines of travel, there is another aspect of using cruise ships. To be specific the Royal Cabribbean. This is a very good investment, but in the midst of a pandemic, it is not a good idea to buy shares with them since people are not travelling. At the end of the crisis I bet this will be a very huge investment because people will be relieved and will want to treat themselves to vacations. But for now, hold your pockets. Until then, grow our money to invest in the Royal Caribbean Stock.

• Pins stock has also been affected by the global pandemic. The global picture sharing application has been affected by a virus since everyone is sharing news mainly on corona and until this ends one should wait so that you can invest in this company. Pinterest stock is plummeted by 11.5% in February and continues to lose.

• The energy industry is also being affected. A company like fcel which is located in China and deals with Toyota and General Motors has been affected heavily. There is no contact with the company so that means they are not making money. We are not sure when it will recover, but for now, it is better to just observe and wait for more updates. The fcel stock are plummeting every day.

• Still on energy production, another company (Occidental) OXY is another company that has suffered under this tough situation. The prices of oil are very low causing a lot of losses to the company as the prices are down by 20%. The fact that Russia and Saudi Arabia are at war for oil does not help terms of oil prices. So with all this things going on, investing in OXY Stock will not be a good idea.

• Another company that has been affected by the pandemic is Hexo. It is a company that deals with Cannabis. They have been hit by having great losses in the last quarter and considering that have delayed in filling their financial statements it will not be wise to invest with the Hexo Stock for now.

• Virgin galactic stock has also suffered from the crisis. Most of the investor are exiting the cooperation in a midst of the crisis.

The 50-50

Uber Company is falling under this category. It is a global cab company with ties all over the world. With the measures placed by the government, the movement of people has been restrained making the Uber stock to be affected. Luckily, they have invested and expanded their services in another area the Uber Eats. This is a home delivery service brought to you by Uber. It is has been very profitable despite the closure of the restaurants as people have been asked to embrace this services and that is a win to them. This is a tricky area to invest in but if you do it right there will be good profits. The uber stock price is not as high as it used to be but the situation is stable.

The S+P 500 is the scale used to rate the stocks of 500 companies across the USA. With the current crisis, most companies have suffered huge losses and the stocks keep on going down and down. Many companies have lost millions and still continue to lose money as the virus continues to spread all over the world. Investors are advised not to buy shares or stocks from the plummeting companies because the crisis is being compared to that of the year 1987. People should brace for a tough economic time until the researchers come up with a cure or a vaccine.